Wednesday, May 27, 2020

China’s Oppo Steps Up Chip Ambition as U.S. Ban Hits Huawei

The U.S. crackdown on China’s Huawei Technologies is spurring its biggest domestic rival to build up its own chipmaking capabilities, including by snapping up top engineering talent from its own suppliers.

Oppo, China’s second-largest smartphone maker and fifth in the world, began stepping up efforts to design its own mobile chips last year, when the U.S. started clamping down on flagship Chinese tech companies like Huawei, sources familiar with the matter told the Nikkei Asian Review.

Designing its own custom chips could help the company reduce its reliance on U.S. suppliers, as well as compete in overseas markets where Huawei is currently struggling, analysts say. But the effort will not be cheap, and could take years to bear fruit, according to industry insiders.

The world leading maker of 5nm size chip are TSMC and Samsung own 5nm. Without 5nm, you are not in cutting edge, latest/greatest as with smaller size, performance, efficiency increase. When cutoff from latest chip, replacement, maintenance, selling newest models etc will be impacted.

Oppo, Xiaomi, Vivo are looking at the fate of Huawei....what if US hit them the same? What if they defy Global sanctions lead by US? and got hit the same too like Huawei? This will drive China to invest their own tech, research, innovation into "own" chip making capability.

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